Advices to Write a Business Plan
Thinking of writing a business plan? This article explains how to outline a business plan, listing the sections in the order in which they will appear in your completed plan with a brief explanation of each section to help you get organized and guide you through the process.
An overview of the industry sector that your business will be a part of, including industry trends, major players in the industry, and estimated industry sales. This section will also include a summary of your business’s place within the industry.
An examination of the primary target market for your product or service, including geographic location, demographics, your target market’s needs and how these needs are being met currently. Your purpose here is to show the reader of your business plan that you have a thorough knowledge of the people you are planning to sell your goods and/or services to – so thorough that you can make educated predictions about how much of your goods and/or services they might buy.
An investigation of your direct and indirect competitors, with an assessment of their competitive advantage and an analysis of how you will overcome any entry barriers to your chosen market. In this section of the business plan, you need to distinguish your business from the competition, persuading the reader(s) of your plan that your business will be able to compete successfully.
A detailed explanation of your sales strategy, pricing plan, proposed advertising and promotion activities, and product or service’s benefits. This is where you present the reader with your new business’s Unique Selling Proposition, describe how you’re going to get your goods and/or services to market and how you’re going to persuade people to buy them.
An outline of your business’s legal structure and management resources, including your internal management team, external management resources, and human resources needs. If the goal of your business plan is to get funding, it’s wise to make sure that your management plan includes an advisory board as a management resource.
A description of your business’s physical location, facilities and equipment, kinds of employees needed, inventory requirements and suppliers, and any other applicable operating details, such as a description of the manufacturing process.
A description of your funding requirements, your detailed financial statements, and a financial statement analysis. This part of the business plan is where you will present the three main financial documents of any business, the balance sheet, the income statement and the cash flow statement. (In the case of a new business, this last document will be a cash flow projection.)
Marketing & Financial Team